'Leverage' for the development of supporting industries

Supporting industry is considered an important foundation to promote sustainable development of Vietnam's economy , reducing dependence on imported raw materials and components. However, attracting investment in this field still faces many challenges in terms of capital, technology and supply chain connectivity. Decree 205/2022/ND-CP amending and supplementing Decree 111/2015/ND-CP was issued to remove difficulties and create favorable conditions for the development of supporting industry.

Sharing at the seminar "Attracting investment in supporting industry: Leverage from policy" organized by Industry and Trade Magazine on October 13, Mr. Pham Van Quan, Deputy Director of the Department of Industry, Ministry of Industry and Trade , said that in the first 9 months of 2025, Vietnam achieved a record import-export turnover of 681 billion USD, of which exports reached 349 billion USD, imports 332 billion USD, creating a trade surplus of 17 billion USD.

However, according to Mr. Pham Van Quan, a worrying reality is that 94% of Vietnam's imported goods are raw materials, spare parts and components, items that Vietnam can completely produce itself if it strongly develops basic and supporting industries.

According to Mr. Quan, the room for developing the supporting industry is huge, but investment capital, especially from FDI enterprises, is still limited. According to statistics from the Ministry of Industry and Trade, from 2020 to now, the total investment of FDI enterprises in supporting industry has only reached about 20 billion USD, while investment from domestic enterprises is even lower, ranging from 5 - 6 billion USD.

Mr. Quan pointed out that the biggest difficulty of Vietnamese enterprises lies in two core factors: Capital and technology. Investing in supporting industries requires large capital and modern technology, which is the weakness of domestic enterprises.

To support businesses, nearly a decade ago, the Government issued Decree 111/2015/ND-CP to encourage and facilitate businesses to invest in supporting industries, the backbone of the national industry. However, during implementation, this decree revealed many limitations, requiring updating and adjustment. Decree 205/2022/ND-CP was issued as an important step forward, with many breakthrough policies to solve problems related to capital, research and development (R&D) and connecting output markets.

Mr. Quan said that this decree requires FDI enterprises that want to receive incentives to have a joint contract with domestic small and medium enterprises, thereby promoting the participation of Vietnamese enterprises in the global supply chain. In addition, industrial development support centers are also established so that enterprises can test-produce products without incurring large costs.

However, according to Mr. Quan, the implementation of the policy still faces many difficulties. Mr. Quan admitted that the policy is often delayed and many businesses are not really interested or have not accessed the incentives due to the lack of professional legal advice. “We have coordinated with localities to organize many propaganda and guidance sessions, but businesses still do not fully understand the benefits they can receive,” Mr. Quan said. To overcome this, the Ministry of Industry and Trade has established the Industrial Development Support Center in Hanoi, ready to support businesses in implementing incentive programs.

From a local perspective, Mr. Hoang Anh Tuan, Deputy Director of the Department of Industry and Trade of Bac Ninh province, said that the province has achieved many outstanding results in developing supporting industries thanks to the strong direction of local leaders. Bac Ninh's industrial production value has grown steadily, ranking among the top in the country, with great contributions from supporting industry enterprises.

Bac Ninh province has issued many support policies and signed cooperation agreements with the Ministry of Industry and Trade and Samsung to improve production for businesses; at the same time, implemented the "24-hour Green Channel" and "60% Green Channel" mechanisms to create favorable conditions for large projects.

Mr. Hoang Anh Tuan said that Decree 205 is strategic with specific support, from raw materials, production to output. Bac Ninh commits to effectively implementing this decree through legal support, connecting supply chains and building specialized industrial parks. He also proposed that the Ministry of Industry and Trade support the orientation of connecting technology and R&D, and called on localities to specifically register supporting industrial products so that the Ministry can develop a comprehensive plan.

From a business perspective, Mr. Ho Ngoc Toan, Deputy General Director of Automech Mechanical Equipment and Solutions Joint Stock Company, shared the company's successful experience in participating in the supply chain. Established in 2020, Automech identified supporting industries and mechanical engineering as the foundation for other industries.

According to Mr. Toan, all industries that want to develop need to rely on mechanical engineering, from agriculture to electronic component manufacturing. Automech Mechanical Equipment and Solutions Joint Stock Company has taken systematic steps, from accessing advanced technology from Europe, Japan, and Korea, to investing in human resources and building a domestic supply chain. Automech also received great support from the Vietnam Association of Supporting Industry Enterprises (VASI) and local authorities in connecting partners and completing investment procedures.

Mr. Toan also pointed out three advantages of Vietnamese supporting industry enterprises, including the ability to flexibly convert production, a team of young engineers who quickly access technology, and a favorable ecosystem with large market opportunities. However, enterprises still face five weaknesses: small scale, limited capital, not meeting international standards, outdated technology, and lack of design industry. To overcome this, Mr. Toan recommended that enterprises need to proactively innovate, invest in R&D and digitalization to meet market demand.

Source: https://baotintuc.vn/kinh-te/don-bay-cho-su-phat-trien-cong-nghiep-ho-tro-20251013194020024.htm